Euro marginally gains ahead of ECB, but not against the yen! Decision at 12:45 BST, conference at 13:30 BST
Euro is stable ahead of ECB decision, while DAX loses 0.5%. It is expected that the ECB will communicate the end of QE and may give signals regarding future hikes, in particular that inflation projections may indicate the risk of further upside.
On the other hand, it is worth noting that on EURJPY there is a squeeze of short positions on the yen against the euro. Overall in the market, the yen is very strong today, which is related to the short squeeze on the currency. Traders have probably decided to close a large number of short positions in the face of ECB risks and tomorrow's inflation reading from the US. Potentially, this could suggest that investors see the risk of a dovish ECB or falling inflation in the US.
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The yen gains not only against the dollar, but also against the euro. The target of the current decline may be the area of 142.5, where the lower limit of the upward trend channel is located. Source: xStation5
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